Information trading system and method

ABSTRACT

A system and method of collecting and trading statistical information between users is disclosed herein. In one embodiment, the information is traded via a network, such as the Internet. The method for trading information includes the step of collecting information from a user at a first location, having a confidential data portion and an exchange data portion. Only the exchange data portion is transmitted to a central location. An exchanged data set is defined at the central location. The exchange data set is updated using the exchange data portion. An output data set is determined from the exchange data set, wherein the output data set is accessible by one or more users.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of and claims priority under 35U.S.C. 120 to U.S. patent application Ser. No. 09/754,492, entitled“INFORMATION TRADING SYSTEM AND METHOD,” filed on Jan. 4, 2001, whichclaims priority under 35 U.S.C. §119(e) U.S. Provisional ApplicationSer. No. 60/208,807, entitled “INTERACTIVE INTERNET STATISTICALINFORMATION TRADING SYSTEM AND METHOD,” filed on Jun. 2, 2000, both ofwhich applications are incorporated herein by reference in theirentirety.

THE FIELD OF THE INVENTION

The present invention generally relates to an information trading systemand method, and more particularly, a system and method of collecting andtrading statistical information between users, which may be traded via anetwork, such as the Internet.

BACKGROUND OF THE INVENTION

Valuation is the process of determining the economic worth of an assetat a particular point in time. Value is ultimately determined by what awilling buyer pays a willing seller for the asset, i.e., price, duringan actual sale transaction. Often, asset value must be estimated absentan actual sales transaction for any one of a number of reasons. In fact,prior to an actual sale, both buyer and seller of the asset arrive at anindependent value for the asset as part of the process for reaching amutually agreed-to sale price.

Value is a relative measure with respect to the marketplace's supply anddemand of identical and alternative items to the one being valued. Assetvaluation is generally a subjectively applied process of first definingthe characteristics of the asset to be valued and comparing them toassets with similar characteristics. This process is commonly known asbenchmarking. Benchmarking can also be applied to non-economic itemssuch as process performance wherein characteristics of the process to beevaluated are compared versus similar processes to determine relativeefficiency or relative quality (i.e., ranking). For example, attributessuch as speed, satisfaction or growth are measurable, non-economicattributes.

Assets, such as business enterprises, are valued by comparison withknown values of similar business. Generally, similarity is determined bysize, type of business activities or products, geographic location, typeof ownership structure, etc.

Rather than compare the business asset under evaluation to individualbusiness assets of known value, a population of similar known-valueassets is frequently summarized using statistical methods familiar tothose skilled in the art. The asset to be valued is subsequentlycompared to the summary statistical information. The Standard IndustrialClassification (SIC) system is a series of number codes that attempts toclassify all business establishments by the types of products orservices they make available. Establishments engaged in the sameactivity, whatever their size or type of ownership, are assigned thesame SIC code. More recently, the North American Industry ClassificationSystem (NAICS), a major revision to the SIC, provides for newerindustries and reorganizes the categories on aproduction/process-oriented basis. With regard to valuation, comparisonscan be easily made to those business classified with the same or similarSIC codes as the business being valued.

Comparative information, such as industry averages and valuationmultiples, are collected into databases and either sold or distributedto dues paying members of the collecting agency. This information iscollected by many different groups and the demand for it is scatteredinto various fragmented parties. While Certified Public Accountants(CPAs) and other valuation specialists may demand statistical averagesfor purpose of valuing a business, a bank may only be interested inoperating averages.

Time is another critical factor when valuing items where either the itembeing valued or the comparison population constituents are dynamicallychanging with time. The marketplace can change during the time duringwhich the analysis occurs, introducing error in the accuracy of theresultant valuation with respect to the marketplace at the time of theresult. Faster analysis yields more accurate results.

One example of an asset which is difficult to value is a privately ownedbusiness enterprise. Business enterprises are unique in size, location,and function. Value is not routinely ascertained and reported, as is thecase for publicly held businesses subject to securities reportingrequirements. Generally, value is determined only for the purposes ofownership transfers, by definition, a private event between transfereeand transferor. Sales transaction information involving privatecompanies or businesses is generally not available such that it may beused as a benchmark for defining the value similar private businesses.

One source for comparative financial data is a commercial databasecompany. There are several database companies collecting data underdifferent approaches. The data is organized into a database, perhapscategorized and/or classified, and made available to interested parties.Typically these databases are indexed and searchable. The databases aremade available via conventional paper printing, more recently via CDelectronic storage media, as well as on-line access. Examples of suchbusiness services include Price Waterhouse Coopers-Corporate financialInformation by Industry Description, Price Waterhouse Coopers-EdgerScan™: an intelligent interface to the SEC. Dun and Brad Street (D&B)has created a database by gathering business information from publicsources such as state and federal government agencies, newspapers,publications and electronic news services and survey. Edger Scan is aninterface to the United States Securities and Exchange CommissionElectronic Data Gathering Analysis and Retrieval Filings.

Database companies collect data under different approaches. The manyusers each have specialized need, demand and supply cycles arecomplicated and inefficient. In order to determine the value of abusiness, an appraiser must first find comparative sales data. The datamay be biased because it represents a small sampling of data that wasnot reported by an impartial third party. Translations or otheradjustments in accounting may have also been employed. The data may nothave been collected in a scientifically random fashion. Or the data maybe far too aggregated to be useful.

Valuation of private or closely held businesses is often difficult dueto the lack of liquidity for these interests. Estimates of value can bedifficult to obtain in the absence of readily available pricinginformation, therefore closely held businesses must typically be valuedindependently. Certified public accountants and business valuationservices specialize in valuation of such interest. Typically the valueof assets net of liabilities, cash flows generated, similar publiclytraded companies and the recent transactions involving similar companiesare considered. The level of significance (i.e. controlling vs. minorityinterest) and the degree to which marketability is impaired also effectsvalue.

There remains a substantial need for an improved system to facilitatereceipt and processing of reliable commercial information which isavailable to users for business purposes.

SUMMARY OF THE INVENTION

The present invention is a network information trading system andmethod, and more particularly, a system and method of collecting andtrading statistical information between users via a network, such as theInternet.

In one embodiment the present invention provides a business method fortrading information. The method includes the step of collectinginformation from a user at a first location, having a confidential dataportion and an exchange data portion. Only the exchange data portion istransmitted to a central location. An exchanged data set is defined atthe central location. The exchange data set is updated using theexchange data portion. An output data set is determined from theexchange data set, wherein the output data set is accessible by one ormore users.

In one aspect, the exchange data is transmitted to the central locationvia a network. In one aspect, the network is an internet network. In oneaspect, the step of determining the output data set includes the step ofdefining a statistical model. A statistical data set is generated usingthe exchange data set and the statistical model. The statistical dataset is stored as the output data set. The step of collecting informationfrom a user includes the step of defining a web page, and collectinginformation from the user via the web page. The central controller isaccessed via the web page using a login routine, wherein the loginroutine determines whether a user is allowed to access the centralcontroller.

In another embodiment, the present invention provides a business methodfor providing commercial statistical data, the method includes the stepof collecting commercial data information via a web page from a user. Acommercial data record is generated using the commercial datainformation, including a confidential subrecord and an exchangesubrecord. A commercial statistical analysis system is defined having anexchange data set. Only the exchange subrecord is transmitted via anetwork communication link to the commercial statistical analysissystem. The exchange data set is updated using the exchange subrecord. Acommercial statistical data set is generated using the commercialstatistical analysis system, wherein the commercial statistical data setis accessible by the user. In one aspect, the network includes theInternet. The collected commercial data information includes assetinformation, public business valuation information, and/or privatebusiness valuation information.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram illustrating one exemplary embodiment of aninformation trading system according to the present invention.

FIG. 2 is a block diagram illustrating one exemplary embodiment ofinformation flow through a portion of the information trading system ofFIG. 1.

FIG. 3 is a block diagram illustrating one exemplary embodiment ofinformation flow through another portion of the information tradingsystem of FIG. 1.

FIG. 4 is a block diagram illustrating one exemplary embodiment of anexchange portion of an information trading system according to thepresent invention.

FIG. 5 is a diagram illustrating one exemplary embodiment of an accesssubrecord used in the information trading system of FIG. 1.

FIG. 6 is a diagram illustrating one exemplary embodiment of aconfidential subrecord used in the information trading system of FIG. 1.

FIG. 7 is a diagram illustrating one exemplary embodiment of an exchangesubrecord used in the information trading system of FIG. 1.

FIG. 8 is a diagram illustrating one exemplary embodiment of statisticalmodel groupings used in the information trading system illustrated inFIG. 1.

FIG. 9 is a block diagram illustrating another exemplary embodiment ofan information trading system according to the present invention.

FIG. 10 is a diagram illustrating one exemplary embodiment of a userinterface used in an information trading system according to the presentinvention.

FIG. 11 is a diagram illustrating another exemplary embodiment of a userinterface used in an information trading system according to the presentinvention.

FIG. 12 is a diagram illustrating one exemplary embodiment of aconfidential portion of a graphical user interface private companytemplate used in an information trading system according to the presentinvention.

FIG. 13 is a block diagram illustrating one exemplary embodiment of anexchange portion of a graphical user interface private company templateused in an information trading system according to the presentinvention.

FIG. 14 is a diagram illustrating another exemplary embodiment of agraphical user interface private company template used in an informationtrading system according to the present invention.

FIG. 15 is a diagram illustrating one exemplary embodiment ofstatistical models defined in a private/public company informationtrading system according to the present invention.

FIG. 16 is a flow diagram illustrating one exemplary embodiment of amethod of trading information according to the present invention.

FIG. 17 is a flow diagram illustrating another exemplary embodiment of amethod of trading information according to the present invention.

FIG. 18 is a flow diagram illustrating another exemplary embodiment of amethod of trading information according to the present invention.

FIG. 19 is a flow diagram illustrating another exemplary embodiment of amethod of trading information according to the present invention.

FIG. 20 is a flow diagram illustrating another exemplary embodiment of amethod of trading information according to the present invention.

DESCRIPTION OF THE PREFERRED EMBODIMENTS

In the following detailed description of the preferred embodiments,reference is made to the accompanying drawings which form a part hereof,and in which is shown by way of illustration specific embodiments inwhich the invention may be practiced. It is to be understood that otherembodiments may be utilized and structural or logical changes may bemade without departing from the scope of the present invention. Thefollowing detailed description, therefore, is not to be taken in alimiting sense, and the scope of the present invention is defined by theappended claims.

The present invention provides an information trading system whichoperates to collect and trade reliable information between users. Inparticular, in exchange for reliable information received from a user,the user has access to a centralized information exchange system. In oneexemplary embodiment disclosed herein, the information trading systemaccording to the present invention is utilized for providing privateand/or public company valuation and other benchmarking information tousers. In one aspect, the users include “qualified users,” wherein asubset or portion of the information stored at the centralizedinformation exchange system is allowed to be updated and accessible onlyby qualified users. In other aspects, the present information tradingsystem has broad applications to many areas where the collecting andtrading of statistical information is useful and valuable (e.g.,scientific, financial, and commercial applications).

Information Trading System

An information trading system according to the present invention isillustrated generally at 30 in FIG. 1. Information trading system 30 isan interactive information trading system which operates to collect andtrade statistical information between users. In one aspect, theinformation is traded via a network, such as the Internet.

In one embodiment, information trading system 30 includes a centralizedinformation exchange system 32 having an exchange system controller 34and an exchange data storage system 36. Centralized information exchangesystem 32 is configured to communicate with one or more users to“exchange” or “trade” information between the users. Further, thecentralized information exchange system 32 operates to perform/provideresearch and analysis on the exchanged or traded information, as desiredby the users. In one aspect, the centralized information exchange systemor a portion of the centralized information exchange system is allowedto communicate only with a user which is a “qualified user.”

In one exemplary embodiment, centralized information exchange system 32is configured to communicate with a first user 39, a second user 41 anda third user 43 via network 44. In particular, centralized informationexchange system 32, first user 39, second user 41 and third user 43communicate using first user interface 38, second user interface 40,third user interface 42, and network 44 via network communication links46, 48, 50, 52.

In one embodiment, information is collected from first user 39 at afirst location; separate from second user 41 and third user 43. Thecollected information includes a confidential data portion orconfidential subrecord 60 (CSR1) and an exchange data portion orexchange data subrecord 62 (ESR1). After completion of a login routine,only the exchange data portion 62 is transmitted to the centralizedinformation exchange system 32.

Exchange system controller 34 is defined to include an exchange data set64 and one or more output data sets 66. The exchange data set 64 isupdated using the exchange data portion 62 received from first user 39.Output data set 66 is determined from the exchange data set 64. Theoutput data set 66 is accessible by one or more users, including firstuser 38, second user 40 and third user 42. The exchange data set 64 andoutput data set 66 can be persistently stored in exchange data storagesystem 36. In one aspect, the information trading system according tothe present invention is a continuous system wherein exchange data set64 is dynamically updated with each received exchange data portion. Inanother aspect, exchange data set 64 is updated at set intervals/timesor as part of a batch system. Exchange data portions 62 received fromusers are batched or stored (e.g., in a queue) for a desired or set timeperiod. At the end of the desired time period (e.g., daily, weekly,etc.), the batched data portions are used to update the correspondingexchange data set.

In a similar manner, information is collected from second user 41, thecollected information including a confidential data portion or subrecord70 (CSR2) and an exchange data portion or exchange subrecord 72 (ESR2).Only the exchange data portion 72 is transmitted to the centralizedinformation exchange system 32 via network 44. The exchange data set 64is updated using the exchange data portion 72. The output data set 66 isdetermined or updated from the updated exchange data set 64.

Similarly, information is collected from third user 43 at a thirdlocation. The collected information includes a confidential data portionor confidential data subrecord 74 (CSR3) and an exchange data portion orexchange data subrecord 76 (ESR3). Only the exchange data portion 76 istransmitted to the centralized information exchange system 32. Theexchange data set 64 is updated using the exchange data portion 76. Theoutput data set 66 is determined from the updated exchange data set 64.The output data set 66 is accessible via a defined query by one or moreusers, including first user 38, second user 40 and third user 42.

Information trading system 30 allows for first user 39 to “trade” or“exchange” information, and in particular, exchange data portion 32, byproviding it to centralized information exchange system 32, in exchangefor access to output data set 66. Similarly, second user 41 providesexchange data portion 72 to centralized information exchange system 32in exchange for output data set 66, and third user 42 provides exchangedata portion 76 to centralized information exchange system 32 inexchange for access to output data set 66.

Network 44, as used herein, is defined to include an internet network(e.g., the Internet), intranet network, or other high-speedcommunication system. In one preferred embodiment, network 44 is theInternet. While the exemplary embodiments in the following descriptionrefer to the Internet network, it is understood that the use of othercommunication networks or next generation communication networks orcombination of communication networks (e.g., an intranet and theInternet) are within the scope of the present invention.

Information trading system 30, including centralized informationexchange system 32 having exchange system controller 34 and exchangedata storage system 36, can be implemented in hardware via amicroprocessor, programmable logic device, or state machine, infirmware, or in software within a given device. In one aspect, at leasta portion of the software programming is web-based and written in HTMLand JAVA programming languages, including links to defined spreadsheetsfor data collection, and each of the main components communicate vianetwork 30 using a communication bus protocol. For example, the presentinvention may or may not use a TCP/IP protocol suite for data transport.Other programming languages and communication bus protocols suitable foruse with the information trading system according to the presentinvention will become apparent to those skilled in the art after readingthe present application. Components of the present invention may residein software on one or more computer-readable mediums. The termcomputer-readable medium as used herein is defined to include any kindof memory, volatile or non-volatile, such as floppy disks, hard disks,CD-Roms, flash memory, read-only memory (ROM), and random access memory(RAM).

In one aspect, first user 39 and second user 41 are defined as“qualified” users. A qualified user is a user who meets a set ofpredefined qualifications such that information obtained from thequalified users is deemed more reliable than information obtained from auser which is not a qualified user. As such, information obtained fromfirst user 39 and second user 41 is considered highly-reliableinformation, and may be stored separate from information obtained from a“non-qualified” user. In one aspect, third user 43 is a non-qualifieduser. A non-qualified user is defined as a user who does not meet therequirements for a qualified user. As such, information traded withthird user 43 is not deemed as reliable as information received fromfirst user 39 and second user 41. Further, third user 43 may not beallowed access to the same database information as first user 39 andsecond user 41.

FIG. 2 is a diagram illustrating one exemplary embodiment of informationflow through a portion of information trading system 30 shown in FIG. 1.In particular, first user interface 38 allows for first user 39 tocommunicate (i.e., exchange or trade information) via network 44 withcentralized information exchange system 32. In one embodiment, firstuser interface 38 is a computer or similar microprocessor basedhardware/software device or appliance (e.g., a personal digitalassistant (PDA) device). The computer may include, for example, an inputdevice such as a keyboard and/or a mouse and a display device such as amonitor, as is known in the art. As such, the first user interface 38facilitates the entry of information by first user 39. Other inputdevices, such as the utilization of a voice recognition system, may beused. First user interface 38 also includes first user data storage 80,for persistent storage of the first user 39's collected and exchangedinformation. In one aspect, the first user data storage 80 includes ahard disk drive. First user interface 38 may include other memorycomponents to aid in the exchange of data, such as random access memory(RAM), read-only memory (ROM), flash memory, etcetera.

Preferably, the first user interface computer runs on an operatingsystem which can support one or more applications. The operating systemis stored in memory and executes on a processor. The operating system ispreferably a multi-tasking operating system which allows simultaneousexecution of multiple applications, although aspects of this inventionmay be implemented using a single-tasking operating system. Theoperating system employs a graphical user interface windowingenvironment which presents the applications or documents in speciallydelineated areas of the display screen called “windows.” Each window hasits own adjustable boundaries which allow the user to enlarge or shrinkthe application or document relative to the display screen. Each windowcan act independently, including its own menu, toolbar, pointers, andother controls, as if it were a virtual display device. Other softwaretools may be employed via the window, such as a spreadsheet forcollecting data. One preferred operating system is a Windows® brandoperating system sold by Microsoft Corporation. However, other operatingsystems which provide windowing environments may be employed, such asthose available from Apple Corporation or IBM.

Portion of the information trading system according to the presentinvention runs on the operating system within first user interface 38.The operating system preferably includes a windows-based dynamic displaywhich allows for the entry or selection of data in dynamic data fieldlocations by first user 39 via an input device such as a keyboard and/ormouse.

In one aspect, collected information 59 is collected from first user 39and includes confidential portion 60 and exchange portion 62. Onlyexchange portion 62 is transmitted via network 44 to centralizedinformation exchange system 32. Confidential portion 60 includesconfidential identifying data which first user 39 desires not to betransmitted to centralized information exchange system 32. Theconfidential identifying data may include, for example, a specific nameor company name, address, the name of the Chief Executive Officer, andthe name of the Chief Financial Officer, etcetera. If known, suchinformation would allow the identification of first user 39 or theorigination of the exchange portion 62 to other users having access tothe centralized information exchange system.

First user interface 38 includes subscriber data 84 which is unique tofirst user 39. The subscriber data 84 operates as a password (PSWD)which is unique to first user 39, and operates to allow first user 39 tohave access to trading information via centralized information exchangesystem 32. During a login routine, the subscriber data 84 is transmittedvia network 44 to centralized information exchange system 32. Thecentralized information exchange system 32 has identifying informationor passwords stored for each user having “clearance” to access thecentralized information exchange system 32. Further, the subscriber data84 indicates to centralized information exchange system 30 whether theuser is a “qualified user” and as such is allowed access to thequalified user exchange data. Once the centralized information exchangesystem 32 determines that the correct subscriber data has beentransmitted for first user 39, a confirmation (C) 86 is returned,indicating that access is allowed and a communication link has beenestablished between the first user interface 38 and the centralizedinformation exchange system 32. Exchange portion 62 can now betransmitted to the centralized information exchange system 32.

Prior to transmitting the exchange portion 62 to centralized informationexchange system 32, the information contained within exchange portion 62is associated with one or more predefined groups (G), indicated at 88.The predefined groups allow for the information within exchange portion62 to be categorized by the centralized information exchange system 32.In particular, one or more groups are defined within centralizedinformation exchange system 32. First user interface 38 determines thegroupings 88 for exchange portion 62 using collected information 59including confidential portion 60. Once the groupings 88 are determined,the groupings are attached to (and may be part of) exchange portion 62.As such, in lieu of transmitting confidential portion 60 to centralizedinformation exchange system 32, groupings 88 are transmitted as part ofexchange portion 62 for the grouping of the data within exchange portion62 by centralized information exchange system 32. Alternatively, thegroupings 88 may be transmitted with the subscriber data 84. Thecollected information 59 from first user 39, including confidentialportion 60 and exchange portion 62, may be persistently stored withinfirst user data storage 80.

In exchange for trading collected information (i.e., the exchangeportion 62) with the centralized information exchange system 32, firstuser 39 may submit a query to centralized information exchange system 32output data set 92 and receive exchange statistics from the centralizedinformation exchange system 32 in response to the query. In particular,first user interface 38 allows for first user 39 to submit an exchangestatistics query (ESQ) 90 (e.g., via a graphical user interface) tocentralized information exchange system 32. In response to the exchangestatistics query 90, centralized information exchange system 32transmits via network 44 exchange statistics to the first user 39,indicated as an output data set (ODS) 92. The output data set 92corresponds to the exchange statistics query 90.

The information trading system 30 is a dynamic information tradingsystem. In exchange for first user 39 to provide information to thecentralized information exchange system 32 via exchange portion 62, thefirst user 39 has access to exchange statistics based on a desiredexchange statistics query, which is dynamically updated utilizing theexchange portion 62 provided by the first user 39 and other users. Everytime an exchange portion 62 is transmitted to the centralizedinformation exchange system 32, the centralized information exchangesystem 32 updates its exchange statistics output data set 92. As such,first user 39 may choose to periodically receive an updated exchangestatistics output data set 92 which corresponds to a preset desiredquery. For example, first user 39 may configure first user interface 38to receive an updated exchange statistics output data set 92 whichcorresponds to a particular query by first user 39 at each confirmedlogin or access to the centralized information exchange system 32.

FIG. 3 is a block diagram illustrating one exemplary embodiment ofinformation flow through another portion of the centralized informationexchange system of the information trading system of FIG. 1. Inparticular, centralized information exchange system 32 includes exchangesystem controller 34 and exchange data storage system 36. Exchangesystem controller 34 includes hardware, software, firmware, or acombination of these. In one preferred embodiment, exchange systemcontroller 34 includes a computer server or other microprocessor basedsystem capable of performing a sequence of logic operations. Inaddition, exchange system controller 34 can include a microprocessorembedded system/appliance incorporating tailored appliance hardwareand/or dedicated single-purpose hardware. Exchange system controller 34also includes other components, such as a memory component (e.g., RAM,ROM, etc.). Exchange data storage system 36 includes non-volatile memory(e.g., a hard disk drive or other persistent storage device) and mayalso include volatile memory (e.g., random access memory (RAM)).Exchange data storage system 36 operates to store exchange data fileswhich are accessible via exchange system controller 34.

In one aspect, exchange system controller 34 includes a web server 100,a query manager 102, statistical models 104 and memory 106. Web server100 can be utilized to provide graphical user interfaces to users. Inone aspect, web server 100 is utilized to coordinate communicationportals between the centralized information exchange system 32 and usersvia network 44. Query manager 102 operates to manage queries from usersbased on statistical models 104. Statistical models 104 are predefinedstatistical groupings or calculations. In particular, as raw exchangedata is received from users (e.g., users or qualified users), such asexchange portion 62, exchange portion 72, and exchange portion 78, thestatistical models 104 are used with the exchange data to update thestatistical data output data set 66. Memory 106 operates to temporarilystore exchange data and output data sets 66 generated using thestatistical models 104. In one exemplary embodiment, predefinedgroupings are stored as part of statistical models 104. As exchange datais received, the exchange data is distributed according to thepredefined groupings for updating statistical output data sets 66 withinthose groupings.

Exchange data storage system 36 is utilized to store raw exchange data,indicated at 64, and statistical data 66 accessible by users via querymanager 102. Further, exchange data storage system 36 is utilized forstorage of other components, such as HTML software 108 utilized by webserver 100.

FIG. 4 is a block diagram illustrating one exemplary embodiment ofexchange data sets 64 and output data sets 66 of an information tradingsystem according to the present invention. In one aspect shown, exchangedata sets 64 include non-qualified user exchange data sets 65 andqualified user exchange data sets 67. In particular, raw exchange datareceived from non-qualified users is stored in non-qualified userexchange data sets 65. Similarly, raw exchange data received fromqualified users is stored in qualified user exchange data sets 67.Output data sets 66 include non-qualified user output data sets 69 andqualified user output data sets 71. In particular, non-qualified useroutput data sets 69 are generated using statistical models 104 and theraw exchange data stored in non-qualified user exchange data sets 65.Similarly, qualified user output data sets 71 are generated usingstatistical models 104 and raw exchange data stored in qualified userexchange data sets 67. In one alternative embodiment, raw exchange datareceived from all users (qualified or non-qualified) is stored in acommon group of exchange data sets. As such, common output data sets aregenerated using the exchange data sets in connection with statisticalmodels 104. FIG. 5 is a diagram illustrating one exemplary embodiment ofan access subrecord including subscriber data 84 used in the informationtrading system according to the present invention. As previouslydescribed herein, subscriber data 84 can be utilized as part of a loginroutine to determine whether a user is allowed to access the centralizedinformation exchange system 32. Additionally, subscriber data 84 mayalso include groupings 138. The groupings 138 are utilized by thecentralized information exchange system 32 for grouping the exchangedata traded between a user and the centralized information exchangesystem 32. For example, groupings for private and public companies mayinclude the standard industrial index or international industrial indexassociated with the exchange data.

FIG. 6 is a diagram illustrating one exemplary embodiment of aconfidential subrecord input to a user interface via a graphical userinterface by a user, indicated at 120. The confidential subrecord 120includes confidential identifying data 122, and other confidential data126. In particular, the confidential identifying data 122 and otherconfidential data 126 are dynamic data fields which include informationprovided by each user. Confidential identifying data 122 may includespecific information uniquely identifying the company or personassociated with the collected information. Other confidential datafields 126 include other confidential data which is not desirable to betransmitted to the centralized information exchange system 32. In onepreferred embodiment, the confidential subrecord 120 is stored locallyand accessible by the corresponding user.

FIG. 7 is a diagram illustrating one exemplary embodiment of an exchangesubrecord 130 used with an information trading system according to thepresent invention. The exchange subrecord 130 is transmitted to thecentralized information exchange system 32. The exchange subrecord 130includes dynamically selectable and/or enterable data fields. In theexemplary embodiment shown, exchange subrecord 130 includes operatingdata 132, assets and working capital 134, financing 136 and groupings138. The operating data field 132, assets and working capital data field134, and financing data field 136 are data fields which may be specificto a type of information trading system. Groupings 138 may be associatedwith exchange subrecord 130. Groupings 138 are predefined groupsdeterminable by the user interface based on the collected informationincluding the confidential subrecord. The groupings 138 are utilized bythe centralized information exchange system 32 for categorizing theexchange subrecord 130 without knowledge of the confidential identifyingdata of confidential subrecord 120. For example, groupings 138 mayinclude a geographic region field associated with the exchange subrecord130.

FIG. 8 is a block diagram illustrating one exemplary embodiment ofstatistical model groupings 140 utilized by an information tradingsystem at the exchange system controller. In one exemplary embodiment,the statistical model 140 includes multiples field 142, SIC averages144, other analytical support 146 and groupings field 148. As such,statistical models are determined for each field type 142, 144, 146.Each field type 142, 144, 146 is further split up within groupingsdefined at 148. For example, for a grouping 148 identified as a numberof geographical regions, each statistical model field 142, 144, 146 istracked separately for each geographical region group.

Private/Public Company Information Trading System

FIG. 9 is a block diagram illustrating one exemplary embodiment of aninformation trading system according to the present invention isindicated generally at 150. The information trading system 150 issimilar to the information trading system 30 previously describedherein, and more specifically, is directed to an information tradingsystem for the trading of public company and private company commercialinformation, which in one embodiment includes company sale transactionand financial data.

In the exemplary embodiment illustrated, private company commercialinformation is collected from one or more users, represented by firstuser 39 and second user 41. Network 44 is an internet network, and moreparticularly, is the Internet, indicated at 152. In one aspect, users39, 41 are qualified users. Typical qualified users include CertifiedPublic Accountants, loan underwriters, and investors. Other privatecompany and public company commercial information is transmitted betweenother users 158 and the centralized information exchange system 32 viathe internet 152. Other qualified users may include insurance companies,investment banks, brokers and consultants. Non-qualified users mayinclude commercial companies and individual investors.

Information on private company sales transactions 154 is collected fromfirst user 39 via first user interface 38. In one exemplary embodiment,private company financial data 156 is also collected from first user 39via first user interface 38. Similarly, private company financial data156 is collected from second user 41 via second user interface 40.Exchange subrecords 62A, 62B associated with the corresponding privatecompany sales transactions 154 and private company financial data 156are transmitted via the internet to centralized information exchangesystem 32A.

The collection of public company information is indicated at block 160.The collection of reliable public company information does not dependupon users as a source. In particular, public company information may beobtained through electronic downloads or manual data input. Publiccompany information can be received via reliable data sources. Forexample, public company SEC data 162 can be obtained from a reliabledata source, such as Dunn & Bradstreet. Public exchange data 164 can beobtained from published public exchange market information, such asreported by the New York Stock Exchange (NYSE), the American StockExchange (AMEX), and the NASDAQ. Public company information may betransmitted to the centralized information exchange system 32A via theinterne 152. Alternatively, the public company information may bedirectly downloaded to the centralized information exchange system 32Avia other direct high-speed communication links, such as a high-speedmodem or T1 telephone line communication link, as indicated by dashedline 166. Value added research and/or analysis is provided at thecentralized information exchange system 32A. Further, public company rawdata 170, public company statistical data 172, private company raw data174 and private company statistical data 176 are maintained at exchangedata storage system 36A. Data stored within exchange data storage system36A is accessible by research/analysis 168 via query manager 102A.Similarly, information stored at data storage system 36A is accessibleby users via query manager 102A.

FIGS. 10 through 15 illustrate exemplary embodiments of graphical userinterfaces for one embodiment of the information trading systemaccording to the present invention. The graphical user interfaces arewindows based user interfaces utilized when trading information betweena user and the centralized information exchange system 32.

In FIG. 8, one exemplary embodiment of a graphical user interfacebetween a user and the centralized information exchange system is showngenerally at 200. The graphic user interface 200 is a windows-basedgraphical user interface, as previously described herein. Graphical userinterface 200 includes pull-down menus for accessing portions of theinformation trading system according to the present invention, includinga FILES pull-down menu 202, a VIEW pull-down menu 204, a REPORTSpull-down menu 206, a GRAPHS pull-down menu 208, and a HELP menu 210.Other suitable menus will become apparent to one skilled in the artafter reading the present application.

Graphical user interface 200 may include other ancillary componentsusable by a user. For example, an advertising block component isillustrated at 212. The advertising block 212 provides space ongraphical user interface 200 reserved for advertising. The advertisingmay be general advertising directed to all users of the informationtrading system. Alternatively, the advertising may be specificallydirected to the user using the graphical user interface 200. Inparticular, based on the information traded between a user and thecentralized information exchange system 32, the centralized informationexchange system 32 may build a profile of the user. Based on the userprofile, specific advertising can be automatically selected by thecentralized information exchange system and directed to the user.Additionally, the advertising can be dynamically changed (e.g., at eachsuccessful login by a user), via the Internet communication link withthe centralized information exchange system 32. The advertising block212 may further include active fields for linking the advertisingcontained within the advertising block 212 to a website associated withthe advertisement. In particular, if a user would like furtherinformation after viewing the advertising, the user can simply click onthe active field within the advertising block 212 and be linked to awebsite associated with the advertisement via the Internet. Similarly, aportion of the graphical user interface 200 may be dedicated to links,illustrated generally at 214. The links 214 provide a user with links toother websites useful to the user. Example links include links fornetworking, periodicals, vendors and research. The links 214 may beautomatically determined by the centralized information exchange system32 based on the profile of the user. Alternatively, the user maydetermine the links 214.

FIG. 11 illustrates one exemplary embodiment of a pull-down menu forFILE menu 202. By selecting FILE menu 202 (e.g., via positioning a mouseat file menu 202 and clicking), a pull-down menu is presented to theuser. In the exemplary embodiment shown, the pull-down menu for FILEmenu 202 includes the following selections: NEW ACCOUNT selection 230,UPDATED FILE selection 232, UPDATED STATS selection 234, SEND/RECEIVEselection 236, PRINT selection 238 and DOWNLOAD SPREADSHEET selection240. Similar pull-down menus are available by selecting VIEW menu 204,REPORTS menu 206, GRAPHS menu 208 or HELP menu 210.

For example, upon selecting NEW ACCOUNT 230 the user is presented withnew account graphical user interface templates for providing informationto the centralized information exchange system 32. FIGS. 12-15illustrate exemplary embodiments of graphical user interface templatesdirected to private company financial statement and private companytransaction templates.

FIG. 12 illustrates one exemplary embodiment of the confidential portionand access data (including subscriber data) portion of a private companyfinancial statement template at 280. The template 280 allows for theentry of private company information for companies ranging from verysmall to very large, as indicated by the headings 282, which allows fora Consolidated Total, Main Division, Division 1, Division 1 and OtherDivisions headings. The private company financial statement confidentialportion includes confidential identifying data 284. The confidentialidentifying data 284 includes the following fields: Company Name,Address, City, State, Zip Code, Country, Country Code, CEO Name, and CFOName.

One exemplary embodiment of subscriber data is also illustrated. Accessdata 285 includes subscriber data 288 and master data or groupings 286.The Master Data 286 includes the entry of information which may beutilized in grouping the private company information. In the exampleshown, the master data selection 286 includes a Standard IndustrialIndex Field and an International Industrial Index Field. Subscriber data288 is used as part of a login routine by the user between the userinterface and the centralized information exchange system 32. In theexemplary embodiment shown, Subscriber Data 288 includes a uniquepreviously designed Registration Number and User Password. TheRegistration Number and User Password are transmitted as a digitalfingerprint to the centralized information exchange system 32 and mustbe verified before allowing communication between the user interface andthe centralized information exchange system 32.

FIG. 13 is a diagram illustrating one exemplary embodiment of theexchange portion of a graphical user interface private company financialstatement template, indicated generally at 300. The template 300includes headings for Input Control, Consolidated Total, Main Division,Division 1, Division 1 and Other Divisions at 302. In the example shown,the exchange portion includes entry fields for Deal-Based Operating Data304, Book Value-Financials Acquired-Sold Company 306, Transaction Data308, and Asset Deal 310. In one exemplary embodiment, the deal-basedoperating data 304 includes entries for sales/revenue and EBITDA. TheBook Value-Financials Acquired-Sold Company 306 includes entries forassets, payables-accruals, bank debt or secured debt, all otheramortizing debt, all other debt and book value of fixed equityinstruments. The Transaction Data 308 includes entries for whether thetransaction was a stock or paper deal, common paper, common sharesoutstanding, shares bought or sold, price paid per share or amount paidfor common percent of common acquired, whether fixed equity instrumentspercentage of book was 100%, if less than 100%, amount paid for faceinstrument, all debt excluding trade payables and accruals where thepercentage of book was 100%, and if less than 100% amount paid for faceinstrument. The Asset Deal 310 includes entries for deal basis,financing structure and computed post-acquisition enterprise value.

In a similar manner, FIG. 14 illustrates one exemplary embodiment of agraphical user interface private company transaction template, indicatedgenerally at 350. The transaction template 350 includes field headings352, including Input Control, Consolidated Total, Main Division,Division 1, Division 1 and Other Divisions. The confidential portionincludes Confidential Identifying Data 354. Access data portion 359includes Master Data 356 and Subscriber Data 358. The exchange portion361 includes Operating Data 360, Assets & Working Capital 362 andFinancing 368. The Operating Data 360 includes entries forsales/revenues, gross profit, operating profit, depreciation,amortization, CO compensation and property rents. The Assets & WorkingCapital 362 includes entries for assets, accounts receivable,inventories, equipment (net), intangibles, and payables & accruals. TheFinancing 368 includes entries for interest bearing debt, other debt,other equity and equity invested. Other suitable public company andprivate company templates will become apparent to those skilled in theart after reading the present application.

FIG. 15 is a diagram illustrating one exemplary embodiment of statisticsmaintained at the centralized information exchange system 32 based onpredetermined statistical models. The private company statistics includeindustry average deal and valuation statistics 382, industry averagecollateral statistics 384, industry average operating performance data386, and industry average asset management data statistics 388. Thestatistics are further broken down as shown. The statistics are furthersorted or “grouped” by SIC codes and NAICS codes, and by three sales andasset levels and by six geographical regions within the United States.Also, the statistics may be grouped by statistics obtained fromqualified users or non-qualified users.

FIGS. 16-20 are flow diagrams illustrating exemplary embodiments of amethod of trading information according to the present invention.Reference is also made to previously detailed FIG. 1 through FIG. 15.

FIG. 16 is a flow diagram illustrating one exemplary embodiment oftrading information according to the present invention. In step 402,information is collected from a user at a first location. The collectedinformation has confidential data portion and an exchange data portion.In step 404, only the exchange data portion is transmitted to acentralized information exchange system via a network communicationlink. In step 406, an exchange data set is defined at the centralizedinformation exchange system. In step 408, the exchange data set isupdated using the exchange data portion. In step 410, an output data setis determined from the exchange data set, wherein the output data set isaccessible by one or more users. The users may be qualified users.

FIG. 17 is a flow diagram further illustrating the step of determiningthe output data set. In step 420, a statistical model is defined. Instep 422, a statistical data set is generated using the exchange dataset and the statistical model. In step 424, the statistical data set isstored as the output data set.

FIG. 18 is a flow diagram illustrating another exemplary embodiment of amethod of trading information according to the present invention. Themethod includes the step of collecting commercial data information via awebpage from a user at step 430. In step 432, a commercial data recordis generated from the commercial data information, including aconfidential subrecord and an exchange subrecord. In step 434, acommercial statistical analysis system is defined having an exchangedata set. In step 436, only the exchange subrecord is transmitted via anetwork communication link to the commercial statistical analysissystem. In step 438, the exchange data set is updated using the exchangesubrecord. In step 440, a commercial statistical data set is generatedusing the commercial statistical analysis system. The commercialstatistical analysis data is accessible by the user.

FIG. 19 is a flow diagram further illustrating one exemplary embodimentof collecting information from a user. The method includes the step ofinputting confidential subrecord data at 450. In step 452, exchangesubrecord data is input. In step 454, one or more data groups aredefined. In step 456, the data group(s) is determined from confidentialsubrecord data and exchange subrecord data. In step 458, the determineddata group(s) is associated with the exchange subrecord.

FIG. 20 is a flow diagram illustrating one exemplary embodiment of alogin routine used in the method of trading information according to thepresent invention. In step 470, a webpage template is defined. In step472, information is collected from the user via the webpage template. Instep 474, the commercial statistical analysis system is accessed via thewebpage using a login routine, wherein the login routine determineswhether a user is a user. In step 476, the output data set istransmitted to the user at the completion of the login routine if theuser is determined to be a user, wherein the output data set correspondsto a predefined theory.

Although specific embodiments have been illustrated and described hereinfor purposes of description of the preferred embodiment, it will beappreciated by those of ordinary skill in the art that a wide variety ofalternate and/or equivalent implementations calculated to achieve thesame purposes may be substituted for the specific embodiments shown anddescribed without departing from the scope of the present invention.Those with skill in the chemical, mechanical, electro-mechanical,electrical, and computer arts will readily appreciate that the presentinvention may be implemented in a very wide variety of embodiments. Thisapplication is intended to cover any adaptations or variations of thepreferred embodiments discussed herein. Therefore, it is manifestlyintended that this invention be limited only by the claims and theequivalents thereof.

1. A computer implemented method for trading information related tocommercial companies via a communication network, the method comprisingthe acts of: collecting, at a central computing system, non-confidentialexchange data, wherein collecting non-confidential exchange dataincludes collecting benchmark information, wherein the benchmarkinformation includes at least one of asset information, public businessvaluation information, private business valuation information, portfolioinformation, capital structure information, and performance information;providing an interface over the communication network displayed on ahost computer at the first user location; receiving from the hostcomputer the non-confidential exchange data from private companyinformation generated on a host computer at the first user location,wherein the private company information includes non-confidential dataand confidential data, and wherein generation of the non-confidentialexchange data includes transforming the confidential data intoclassification information associated with the non-confidential databased, at least in part, on a type of product or service offered by theprivate company, and wherein receiving from the host computer thenon-confidential data includes receiving only the non-confidentialexchange data from the private company information, at the centralcomputer system wherein the non-confidential exchange data contains noconfidential data; and generating on the central computer system outputdata, based, at least in part, on any collected non-confidentialexchange data; and transmitting at least a portion of the output dataover the communication network.
 2. The method of claim 1, wherein themethod further comprises defining, by the interface one or more groups;and determining, by the interface, one or more groups associated withthe private company information.
 3. The method of claim 2, wherein themethod further comprises attaching by the interface the determinedgroups to the non-confidential exchange data.
 4. The method of claim 2,wherein the method further comprises determining by the interface theone of more groups associated with the private company informationbased, at least in part, on the confidential data.
 5. The method ofclaim 1, further comprising the step of defining the first user as aqualified user.
 6. The method of claim 5, further comprising the step ofdefining the non-confidential exchange data collected from the firstuser as qualified exchange data.
 7. The method of claim 1, wherein themethod further comprises storing, by the interface, the private companyinformation at the first location.
 8. The method of claim 1, wherein themethod further comprises storing, by the interface, any confidentialdata at the first location.
 9. The method of claim 1, wherein the stepof generating the output data further comprises the acts of: defining astatistical model; generating the output data using the collectednon-confidential exchange data and the statistical model; and storingthe output data.
 10. The method of claim 9, further comprising acts of:collecting non-confidential exchange data from a second user at a seconduser location; and providing the interface over the communicationnetwork to the second user.
 11. The method of claim 1, wherein the actof providing the interface over the communication network furtherincludes the acts of: providing a graphical user interface displayed aspart of a webpage; and providing for collection of information from thefirst user location via the webpage displayed at the first userlocation.
 12. The method of claim 11, further comprising the step of:providing for access to the central computer via the webpage using alogin routine, wherein the login routine determines whether a user isallowed to access the central controller.
 13. The method of claim 1,wherein the output data contains statistical averages for a commercialindustry.
 14. The method of claim 13, wherein the statistical averagesinclude at least one of average deal statistics, average valuationstatistics, average collateral statistics, average operating performancestatistics, and average operating performance data.
 15. The method ofclaim 1, further comprising an act of requiring the user submitnon-confidential exchange data prior to permitting the user to accessany output data.
 16. The method of claim 1, wherein the output datapermits the user to determine a value for a respective private company.17. A system for trading commercial information via a network, thesystem comprising: a central computer server configured to receivenon-confidential exchange data from a host computer system at a firstuser location wherein the non-confidential exchange data includesbenchmark information, wherein the benchmark information includes atleast one of asset information, public business valuation information,private business valuation information, business valuation information,portfolio information, capital structure information, and businessperformance information; interface provided from the central computerserver configured to: display on the host computer; generate thenon-confidential exchange data from private company information on thehost computer at the first user location, wherein the private companyinformation includes non-confidential data and confidential data, andwherein generation of the non-confidential exchange data includestransforming the confidential data into classification informationassociated with the non-confidential data based, at least in part, on atype of product or service offered by the private company, andcommunicate only the non-confidential exchange data from the privatecompany information to a central computer system, and wherein thenon-confidential exchange data contains no confidential data; and amodeling component configured to generate output data, based, at leastin part, on any collected non-confidential exchange data; and acommunication component configured to transmit at least a portion of theoutput data to a user over the communication network.
 18. The system ofclaim 17, wherein the user interface is further configured to: defineone or more groups for company information; and determine one of moregroups associated with the private company information.
 19. The systemof claim 18, wherein the user interface is further configured to attachthe determined groups to the non-confidential exchange data.
 20. Thesystem of claim 17, wherein the central computer system is furtherconfigured to require the user submit non-confidential exchange datafrom a respective private company information prior to permitting theuser to access the output data.
 21. The system of claim 17, wherein theoutput data permits the user to determine a value for a respectiveprivate company.
 22. The system of claim 17, wherein the output datacontains statistical averages for a commercial industry.
 23. The methodof claim 1, wherein the output data includes at least one of performanceand valuation data.